InternationalHumanResourceManagement國際人力資源管理.ppt

International Human Resources and Multinational Corporations,HRM typically refers to those activities undertaken by an organisation to utilize human resources effectively, HR planning Staffing (recruitment, selection, placement) Performance management Training and development Compensation (remuneration) and benefits Industrial relations,Dowling and Welch, 2004,Human resource Activities,HRM Functions,Armstrong (1999) defines HRM as strategic and coherent approach to the management of organisations most valued asset-the people working there who individually and collectively contributes to the achievement of the goals Boxhall and Purcell give a broader definition as human resources management includes the firms work system and its employment practices. It embraces both individual and collective aspects of people management,HRM and Personnel Management,Personal management deals purely with the practical aspects of recruitment, staff appraisal, training, job evaluation e.t.c. HRM on the contrary has a strategic dimension and involves the total deployment of all the human resources available to the firm, including integration of personnel and other HRM considerations into the firms overall corporate planning and strategy formulation procedures.,What changes when HRM goes international?,The human resources activities of procurement, allocation and utilization These activities can be expanded into the six activities mentioned previously Dowling and Welch, 2004,2. The national or country categories involved The host country where a subsidiary may be located The home country where the firm is headquartered The “other” countries that may be the source of labour, finance or other inputs Dowling and Welch, 2004,What changes when HRM goes international?,3. The three categories of employees of an international firm Host-country nationals Parent-country nationals Third-country nationals Dowling and Welch, 2004,What changes when HRM goes international?,A model of IHRM,A model for Investigating HRM strategies,Brewsters and Hegswichs (1994) model of HRM shows corporate strategies, HRM strategies and practices that are located both within the internal and external environments of HRM The internal environment includes organisational features such as size, structure and corporate culture The external environment includes national culture, power systems, legislation, education and employee representation The model mainly serves as a reminder to practitioners that their human resources strategies must reflect the organisational and national cultures in which they are operating,A model for Investigating HRM strategies,IHRM is the interplay among these three dimensions human resource activities, types of employees and countries of operation. IHRM involves the same activities as domestic HRM Domestic HRM is involved with employees within only one national boundary Dowling and Welch, 2004,IHRM and HRM,An obvious difference between domestic and international HRM is that staff are moved across national boundaries into various roles within the international firms foreign operations (expatriates) An expatriate is an employee who is working and temporarily residing in a foreign country (also “international assignees”) Dowling and Welch, 2004,What is an expatriate?,International Human Resource Management (IHRM),International human resource management (IHRM) is the process of selecting, training, developing, and compensating personnel in overseas positions. Boxhall (1992) defines IHRM as being concerned with the human resource problem of multinational firms in foreign subsidiaries (such as expatriate management),Criteria relevant to the definition of IHRM,There are a number of criteria relevant to the definition of IHRM: IHRM concern with HRM issues that cross national boundaries or are conducted in locations other than the home country headquarters of the organisations within the study IHRM is concerned with the relationships between the HRM activities of organisations and the foreign environments in which the organisation operates IHRM includes comparative HRM studies, for example how companies in Japan, Thailand, Austria and Switzerland plan for increased employee commitment, upgrading of employee skills etc,IHRM and Organisational Structure,The type of international organisational structure adopted by the MNE will provide the context for many of the IHRM issues faced by the company,The five readily types of organisational structure includes:,International division structure International geographic/regional structure International product structure International functional structure Matrix or mixed structure,International Organisational structure,Chief executive/Headquarters,Production,Marketing,Finance,Personnel,International division,Country A,Country B,Country C,Product A,Product B,Product C,Production,Marketing,Finance,Personnel,Country C,Country B,Country A,International geographic structure,International product structure,International Functional structure,International HRM Approaches,Forms of approaches are often used to describe the ways in which MNEs might conduct their international HRM policies. These are: The Ethnocentric approach The Polycentric approach The Geocentric approach The Regiocentric approach,The Ethnocentric approach,In this approach, all key positions in the host country subsidiary are filled by nationals of the parent company,This approach offers the most direct control by the parent company over the host subsidiary, and is often adopted when there is felt to be the need to maintain good communication between the headquarters of the MNE and the subsidiary,This approach is often followed in the early stages of internationalisation when the MNE is seeking to establish a new business or product in another country. Vodaphone is an example of ethnocentric approach,The polycentric approach,In this approach, host country nationals are recruited to manage the subsidiaries in their own country.,This allow the MNE to take a lower profile in sensitive economic and political situations and helps to avoid intercultural management problems,Polycentric firms tend to act like a federation of semi-autonomous organizations with financial controls or strict reporting structures holding them together. Subsidiaries are able to reflect the local cultural norms, and headquarters appreciates the need for different organization designs, procedural norms, rewards systems, etc., as long as profits flow to the centre.,The Geocentric approach,This approach utilises the best people for all the key jobs throughout the organisation irrespective of their nationality or geographical location of the post to be filled.,In this way an international executive team can be developed,Geocentric firms are seen as the ideal, collaborative, and meritocratic form of global organization. (Unilever is seen as an example based on the above statement.) An equal sharing of power and responsibility between headquarters and subsidiary; senior management promoted according to ability rather than nationality; subsidiaries that share worldwide objectives with managers focusing beyond national market interests.,With this approach, the MNE divides its operations into geographic regions and moves staff within particular regions, e.g. Europe, America, Asia rather than between regions.,The Regiocentric approach,Choices between these different approaches will depend on the culture, philosophy, and the local conditions in which the firm operates. Finding the right balance between integration and decentralisation for IHRM is complex and the mix depends on the following: Degree and type of internationalisation Types of industry and markets Characteristics and staff Cultural preference,Factors affecting the choice of approach,There is a range of options for international firms as to how they may expand, from exporting through to using wholly-owned subsidiaries. In general an integrated and more ethnocentric approach to HRM is often adopted for the wholly-owned subsidiary, with the MNE retaining centralised control over the way in which its employees are managed,Degree and type of internationalisation,for more global industry, IHRM approach to be adopted is ethnocentric and for multidomestic industry, IHRM is more likely to be Polycentric,Type of industry and markets served,Characteristics of staff,The type of employees may well influence the degree to which the IHRM function is decentralised. For example, if the employees of a subsidiary consists of highly skilled, experienced and fully committed staff, the IHRM function may be decentralised Where the employees may consist of unskilled and temporary staff the headquarters will have a greater control,Cultural preferences,The degree of integration and decentralisation will also depend on the cultural preferences towards either of these approaches to management in both the organisation and in the country in which the subsidiary operates, the latter reflects Hofstedes idea of national cultural distance,IHRM Challenges,Two of the major human resource management challenges facing MNEs are those of selecting qualified people for overseas assignments and, Effectively repatriating home-country nationals into the workforce upon their return. Each presents a significant challenge.,International screening criteria and selection procedures,International screening criteria are those factors used to identify the individuals regarded as most suitable for overseas assignment. Some MNEs use an extensive list, whereas others rely on only a handful of factors. A number of screening criteria are commonly used in determining whom to send overseas.,International screening criteria and selection procedures,These criteria focus on both individual and family considerations. Some of these criteria are in the form of: Adaptability Self-reliance Age, experience, and education Health and family status Motivation and leadership Selection procedures,Repatriation of expats,Repatriation is the process of returning home at the end of an overseas assignment. Managers are repatriated for a number of reasons. The most common one is that the predetermined time assignment is completed. Another reason is the desire to have their children educated in the home country Finally, as in any position, if a manager has performed poorly, the MNE may decide to put someone else in the position.,Training and development,Training is the process of altering employee behaviours and attitudes in a way that increases the probability of goal attainment. Managerial development is the process by which managers obtain the necessary skills, experiences, and attitudes they need to become or remain successful leaders. Training programs are designed to provide those who are going overseas with information and experience related to local customs, cultures, and work habits, thus helping them interact and work more effectively with local employees,Types of training,MNEs use several types of training and development programs. These can be grouped into two general categories: standardized and tailor-made Standardized training programs are generic and can be used with managers anywhere in the world. Examples include programs for improving quantitative analysis or technical skills that can be used universally,Types of training,Tailor-made training programs are designed to meet the specific needs of participants and typically include a large amount of culturally based input. These programs are more commonly developed by large MNEs and by multinationals that need a working knowledge of the local countrys beliefs, norms, attitudes, and work values.,Challenges to Cross-cultural management,Cross-cultural management challenges include: Direct versus indirect communication Differing attitudes towards hierarchy Conflicting norms for decision making Problems with accents and fluency,STRATEGIC MANAGEMENT AND IHRM STRATEGIES,A number of HRM strategies are currently receiving attention from MNEs. There are too many issues to address here, but three that do warrant consideration are language training, cultural adaptation, and competitive compensation,Language training,Englis